The Autumn Budget has made some significant revisions to the definition of “personal company” which has serious consequences for investors wishing to take advantage of Entrepreneurs’ Relief when making gains from the disposal of shares or securities.
The chancellor’s Autumn Budget contained plenty of good news for businesses, encouraging investment as the country heads towards Brexit; however, the eligibility criteria of Entrepreneurs’ Relief was tightened.
With the revisions, to now qualify for entrepreneurs’ relief for any gains made from the disposal of shares or securities, the issuer of the shares must be the taxpayer’s personal company. However, the criteria as to what constitutes a personal company has changed and will affect any disposals made from 29 October 2018.
To be eligible for Entrepreneurs’ Relief, the taxpayer needs to satisfy the following:
Who is affected?If you have your own company and hold ordinary shares with full voting rights and rights to the company’s assets on a winding-up, it is unlikely you will be affected by the change.
Further changesA further change to Entrepreneurs’ Relief is to take immediate effect for all disposals made from 6 April 2019.
A family run business in its third generation, supplying office furniture nationwide either directly or through white label websites on behalf of other retailers. Having built up an excellent reputation for the product range and service provided, the...
Indicative offers are required by noon of Tuesday 22 September 2020, with a sale concluded by no later than the close of business on Friday 25 September 2020 and therefore only parties that are able to work within this time frame should respond.
Presenting to the market a well established 2 surgery practice due to the vendors plans to reduce responsibilities. Income is derived from fee per item patients and a large capitation scheme which equates to 32% of the practice income.
Sign up to receive our acquisition alert emails to get your FREE guide
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources